Sydneys Barbecue reported the following information Sydneys

Sydney\'s Barbecue reported the following information: Sydney\'s Barbecue Period Ending December 31, 20XX Manufacturing costs Units manufactured Beginning inventory Note: 45,100 units sold during year at $270 per unit 3,500,000 60,000 What is the amount of ending finished goods inventory for the period ending December 31, 20XX? OA. B. O c. $869,117 S879, 117 $889,117 D. $859,117 O E. $849,117

Solution

Answer: Total Manufacturing Cost = 35,00,000 Total units manufacture = 60,000 So Manufacturing cost per unit = (35,00,000/60,000) = 58.33 Computation of Closing number of inventory units Particulars Units Opening Inventory 0 Add: Units Manufacture 60,000 Less: Units Sold 45100 Closing Inventory Units 14,900 Cost per unit 58.33 Value of Closing Inventory 8,69,117.00 (14,900*58.33)